HomeMy WebLinkAbout3.a. Water Utility RatesAGENDA ITEM: Water Utility Rates
r r ITION:
Rates*
PREPARED BY: Andrew J. Brotzler, PE, City Engin
AGENDA NO. 3 Pt"-
10,001 30,000
ATTACHMENTS: Water Rate Analysis spreadsheet
APPROVED BY:
MI
RECOMMENDED ACTION: Discussion
$1.90
Residential
uarterly usage (gallons)
Rates*
0 10,000
$0.90
10,001 30,000
$1.10
30,001— 60,000
$1.40
60,001 100,000
$1.90
100,000
$2.75
Commercial/Industrial
Quarterly usage (gallons)
Rates*
0 100,000
$1.05
100,001— 200,000
$1.30
200,001 300,000
$1.60
300,000
$2.00
4 ROSEMOUNT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Work Session: May 13, 2009
BACKGROUND:
In July 2008, the Minnesota Department of Natural Resources (DNR) notified public water
suppliers that they must implement a rate structure that promotes water conservation by January 1,
2010, or prior to being permitted for a new well or increase in appropriations. Since then, staff has
met twice with the Utility Commission to discuss a number of scenarios that would accomplish the
following goals:
comply with the DNR requirements to promote conservation
maintain the necessary revenue to support the maintenance and operation costs of our water
system
At the April 13, 2009 Utility Commission meeting, the Utility Commission took action to
recommend Council approval of the following tiered rate structures that accomplish both goals.
*per thousand gallons
*per thousand gallons
The City's current water rate since 1999 is $1.02 per thousand.
Along with the implementation of tiered rates, the Utility Commission supported an increase in the
fixed rate from $8.90 per quarter to $10.00 per quarter. The water surcharge, which helps to fund
system expansion, is not proposed to increase.
G \Utilities \RATES \W aterRateStudyC W S5- 13 -09. doc
The attached spreadsheet models the water utility fund expenditure and revenue activity through
2020. It was noted by the Utility Commission that this model will be reviewed annually and rate
adjustments will be made as necessary.
In addition to the water rate changes, City staff is currently studying sewer rate scenarios that include
the possible elimination of second water meters. Scenarios will be discussed with the Utility
Commission at the May and, if necessary, June Utility Commission meetings. Once a
recommendation has been made by the Utility Commission, staff will present the City Council with
a final recommendation for changes to both the water and sewer rates, along with a
recommendation for whether to continue using second water meters for irrigation.
SUMMARY:
Staff is presenting this information as an update. No further action is required at this time.
G: \Utilities\ RATES \WaterRateStudyCWS5- 13- 09.doc
5
c
co
D 'O a CD
d
CD
CD
Expenses
CD
Growth and
Demand
'Capital Investment Fund Balance (Year End)
'Transfer to Water Utility Fund
TTotal Water Surcharge Revenue
ICalc. Water Surcharge 6"
ICalc. Water Surcharge 1"
ICalc. Water Surcharge Multi Family 5/8" (5
ICalc. Water Surcharge Single Family 5/8" (95
Balance change
1Balance change amount
1Balance after Revenues (Year End)
(Miscellaneous Water Revenues (antenna, interest)
ITransferfrom Capital Investment Fund
1Total Revenues excluding surcharge
1Calc. Meter Maintenance 6"
Calculated Fixed Charges
Residential Tier 1 (0 10,000 gal)
Residential Tier 2 (10,001 30,000 gal)
Residential Tier 3 (30,001 60,000 gal)
Residential Tier 4 (60,001 100,000 gal)
Residential Tier 5 100,000 gal)
Comm Ind Inst Tier 1 (0 100,000 gal)
Comm Ind Inst Tier 2 (100,001 200,000 gal)
Comm Ind Inst Tier 3 (200,001 300,000 gal)
Comm Ind Inst Tier 4 300,000 gal)
Calc. Meter Maintenance 1"
!Balance after Expsenses
1Total Expenses
'Utility Equipment Purchases (3% increase /yr)
'Debt Service
WTP Debt Service $12,000,000 15 years 4.0%
'Total Well and Tower Expenses
'Total Operating Expenses
IBeginning Balance
Meter Maintenance 6" /account/quarter)
Meter Maintenance 1" /account/quarter)
'Surcharge 6" /account) I
'Surcharge 1" /account)
'Surcharge Multi Family 5/8" /account)
'Surcharge Single Family 5/8" /account)
Comm Ind Inst Tier 4 300,000 gal)
Comm Ind Inst Tier 3 (200,001 300,000 gal)
Comm Ind Inst Tier 2 (100,001 200,000 gal)
Comm Ind Inst Tier 1 (0 100,000 gal)
Residential Tier 5 100,000 gal) J
Residential Tier 4 (60,001 100,000 gal)
Residential Tier 3 (30,001 60,000 gal)
Residential Tier 2 (10,001 30,000 gal) 1
Residential Tier 1 (0 10,000 gal) 1
Water Fixed Charge /account/quarter) 1
Business Park/Air Cargo Connections 1
Institutional/Industrial Connections 1
Commercial Connections
Residential Connections
Percent of System Expansion
Water Demand (MG)
Description 1
fA
N
fH
69
1 1,453,927.00
1 S. 963,270.00
I 4,696.00
fA
159,535.00 I
799,039.00 I
M
100.00'
6.25'
154.00 1
13.50 I
6.80 I
8.80 I
1.02 1
8.90 1
O
42 1
145 1
5,817 1
944.07 1
2006 Actual 1
111
1 1,404,903.00 1 1,322,041.97
1,938,468.00 1 964,445.35 I
1 4,432.00 I 4,153.21 I
fA
I 799,611.00 I 230,003.48'
I 1,134,425.00 I 730,288.66'
I$ I$ 1
100 100.00 I
I 6.251$ 6.251
154.00 I 154.00 I
I$ 13.501$ 13.501
6.80 I 6.80 I
8.80 I 8.80 1
1.02 1 1.02 1
8.90 I 8.90 1
O
O
42 I 52 1
145 I 134 1
5,890 1 5 993_
1.2% 1 1.7% 1
937.54 I 910.00 1
2007 Actual I 2008 Actual 1
I 545,749.41
798,949.72 259,322.57 265,070.43 277,186.05 289,247.16 1 302,513.81 I 315,783.50 I 330,319.18 I 344,921.34 1 360,856.11 1 376,927.31 I 394,404.58 II
1 1 (798,949.72)1 (259,322.57)1 (265,070.43)1 (277,186.05)1 (289,247.16)1 (302,513.81)1 (315,783.50)1 (330,319.18)1 (344,921.34)1 (360,856.11)1 (376,927.31)11
1 253,200.31 1 259,322.57 1 265,070.43 1 277,186.05 1 289,247.16 I 302,513.81 I 315,783.50 1 330,319.18 1 344,921.34 I 360,856.11 I 376,927.31 I 394,404.58 11
1 32,032.001 32,648.00 1 32,648.00 I 33,264.00 I 33,264.00 I 33,880.00 I 33,880.00 I 34,496.00 1 34,496.00 I 35,112.00 I 35,112.00 I 35,728.0011
7,398.00 1 7,560.00 I 7,830.00 I 8,100.00 I 8,370.00 I 8,640.00 I 8,910.00 1 9,180.00 I 9,450.00 I 9,720.00 1 9,990.00 I 10,260.0011
205,416.07 210,551.47 215,815.26 226,606.02 237,936.32 249,833.14 262,324.79 275,441.03 289,213.08 303,673.74 318,857.43 334,800.30
8,354.24 8,563.10 8,777.18 9,216.03 9,676.84 10,160.68 10,668.71 11,202.15 11,762.25 12,350.37 12,967.89 13,616.28
6.03 %1 28.57 %1 5.65 %1 14.62 %1 7.32 %1 0.44 %1 11.81 %1 24.90 %1 29.96 %1 17.34 %1 4.20 %1 14.78 %11
(161,700.00)1 720,470.10 1 (183,200.87)1 (447,366.83)1 (191,222.22)1 10,697.96 1 287,050.98 1 (676,746.83)1 (611,614.73)1 (247,932.41)1 (49,696.64)1 167,362.05 11
2,521,712.78 3,242,182.86 3,058,981.99 2,811,615.16 2,420,392.95 2,431,090.91 1 2,718,141.89 1 2,041,395.08 1 1,429,780.33 1 1,181,847.92 1 1,132,151.28 1 1,299,513.33
1 I 231,400.00 I 234,000.00 I 288,400.00 I 296,800.00 I 302,400.00 I 308,300.00 I 314,400.00 1 320,900.00 I 327,700.00 I 334,800.00 1 342,300.00 11
1 I 798,949.72 I 259,322.57 I 265,070.43 I 277,186.05 1 289,247.16 I 302,513.81 1 315,783.50 1 330,319.18 I 344,921.34 I 360,856.11 1 376,927.31 11
1 1,250,200.00 I 1,206,120.38 1 1,254,146.57 1 1,401,712.74 I 1,489,701.73 1 1,666,720.80 I 1,861,877.17 I 2,082,189.66 1 2,327,676.09 I 2,606,956.25 I 2,917,267.25 1 3,264,474.7411
21,200.00 21,200.00 21,600.00 21,600.00 1 22,000.00 22,000.00 1 22400.00 I 22,400.00 I 22,800.00 I 22,800.00 1 23,200.00
259,575 284 69 7 .28 3 19 678.79 358 904 31 402 995.67 452443.04 508 019.61 570 355.38 640 412.83 719 000.08 807 316.60
".'.i e.r_ at d A 'a �,'..b ,X.x..x:. R ,.,.m xa
x .:_..._r......,
ask; ^w' '4
y x x ..fix._. a S
18 500.00 18,625.00 18,750.00 18,875.00 19,000.00 19,125.00 19 250.00 19,375.00 19 500.00 19 625.00 19,750.00
1,271,512.76 1,005,712.76 1,311,512.86 656,431.99 356,705.16 1 172,722.95 245,450.91 1 (670,978.11)1 (1,549,114.95) (2,097,729.67)1 (2,480,772.08)1 (2,684,188.72)11
1 1,411,900.00 1 S 1,516,000.00 1 1,930,670.00 1 2,402,550.00 1 2,254,910.00 1 2,247,670.00 1 2,185,640.00 1 S 3,389,120.00 1 3,590,510.00 1 3,527,510.00 1 3,662,620.00 1 3,816,340.00
I I 5,000.00 I 5,200.00 I 5,400.00 I 5,600.00 I 5,800.00 1 6,000.00 1 6,200.00 I 6,400.00 1 6,600.00 I 6,800.00 I 7,000.00 11
I I 100,000.00 1 450,000.00 I 800,000.00 1 560,000.00 1 458,000.00 I 295,000.00 I 293,000.00 1 200,000.00 I 1 I 11
1$ 1 1 1 1 1 1 1 1,098,200.00 I 1,098,200.00 1 1,098,800.00 I 1,098,400.00 1 1,097,000.00 11
206,400.00 I 327,800.00 I 336,300.001 345,100.00 I 360,400.00 I 376,200.00 I 392,800.00 I 410,200.00 1 428400.00 1 447,500.00 I 467,400.00 I 488,000.00 11
1,205,500.00 1 1,083,200.00 1 1,139,170.00 I 1,252,050.00 I 1,328,910.00 I 1407,670.00 1 1,491,840.00 1 1,581,520.00 1 1,857,510.00 I 1,974,610.00 I 2,090,020.00 I 2,224,340.00 11
2 683 412.76 2 521 712.76 3 242 182.86 3 058 981.99 2 611 615.16 2 420 392.95 2 431 090.91 2 718 141.89 2 041 395.05 1 429 780.33 1 181 847.92 1 132 151.28
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00I
6.25 1 6.25 1 6.25 I 6.25 I 6.25 1 6.25 I 6.25 I 6.25 I 6.25 I 6.25 I 6.25 I 6.2511
154.00 I 154.00 1 154.00 1 154.00 I 154.00 1 154.00 I 154.00 I 154.00 1 154.00 I 154.00 1 154.00 I 154.00 11
13.50 13.50 13.50 13.50 13.50 I 13.50 I 13.50 I 13.50 I 13.50 1 13.50 I 13.50 I 13.50 11
6.80 6.80 6.80 6.80 6.80 I 6.80 I 6.80 1 6.80 I 6.80 I 6.80 I 6.80 I 6.80 11
8.80 8.80 8.80 8.80 8.80 8.80 8.80 8.80 8.80 I 8.80 I 8.60 1 8.80 11
2.00 2.00 2.14 2.14 2.29 2.45 2.62 1 2.80 I 3.00 I 3.21 I 3.4311
1.60 1.60 1.71 1.71 I 1.83 I 1.96 I 2.10 I 2.25 I 2.41 I 2.58 I 2.76 II
1.30 1.30 1.39 1.39 1.49 1.59 1.70 1.82 I 1.95 I 2.09 I 2.2411
1.05 1.05 1.12 1.12 1.20 1.28 1.37 1 1.47 1 1.57 I 1.68 I 1.8011
2.75 2.75 2.94 2.94 3.15 1 3.37 1 3.61 1 3.86 1 4.13 1 4.42 1 4.7311
1.90 1.90 2.03 2.03 1 2.17 I 2.32 I 2.48 I 2.65 I 2.84 1 3.04 I 3.2511
1.40 1.40 1.50 1.50 1 1.61 I 1.72 I 1.84 1 1.97 I 2.11 I 2.26 I 2.42 11
1.10 1.10 1.18 1.18 1.26 1.35 1.44 1.54 1.65 I 1.77 I 1.89
1.02 0.90 0.90 0.96 0.996$ 1.03 1 1.10 I 1.18 I 1.26 I 1.35 1 1.44 1 1.54 11
8.90 10.001$ 10.701$ 11.451$ 12.251$ 13.11 14.031$ 15.01 16.06 17.181$ 18.38 19.6711
0 0 0 0 0 T o 1 o I o 1 o I o I o I o II
52 53 53 54 54 1 55 1 55 1 56 1 56 1 57 I 57 1 58 11
137 140 145 150 155 160 165 170 175 I 180 1 185 I 190 11
6,143 6,296 6,454 6,776 7,115 1 7,471 1 7,845 1 8,237 I 8,649 I 9,081 I 9,535 I 10,012 I1
2.5% 2.5% 2.5% 4.9% 4.9% 1 4.9% I 4.9% 1 4.9% 1 4.9% I 4.9% I 4.9% I 4.9% 11
932.51 955.71 979.63 1,028.04 1,078.67 1,131.95 1,187.70 1,246.35 1,307.74 1 1,372.31 T 1,439.92 I 1,511.02 11
2009 Budgeted 1 2010 1 2011 1 2012 1 2013 1 2014 1 2015 I 2016 I 2017 1 2018 1 2019 1 2020 �I
CO 0 t W V m N A W N O I CO V O A W 01 A W N- O I CO V O O A W N- O f0 co V a, cn N O t0 0) V O) N A W N
v
GAUtilities RATES Mater Rates 4-13-09